On dissolution, unrecorded liabilities, when paid are shown in:

The correct answer is Option (1) → Debit of Realisation Account

An unrecorded liability paid on dissolution is a loss of realisation: Realisation A/c Dr. To Bank A/c.

Option (2) Debit of Bank Account — Incorrect. A payment is credited to Bank Account.

Option (3) Credit of Realisation Account — Incorrect. The credit side records realisation of assets and recorded liabilities transferred; a payment is a debit.

Option (4) Debit of Revaluation Account — Incorrect. Revaluation Account is used on reconstitution, not on dissolution.